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Leon's Furniture Ltd. and The Brick Ltd. say a key hurdle has been overcome in the plan for Leon's to take over its rival.

Both companies say the Commissioner of Competition has issued a "no-action" letter, meaning the deal won't be challenged before the Competition Tribunal.

The companies say the takeover of The Brick is now expected to close on March 28. The Brick's shareholders and warrantholders voted overwhelmingly to approve a takeover offer from Leon's, which announced the friendly deal in November.

Under the deal, Brick shareholders may receive $5.40 in cash per common share or 0.0054 convertible debentures. For each warrant, the holder may receive $4.40 in cash per warrant or 0.0044 convertible debentures per warrant.

Leon's, founded in 1909 in Welland, Ont., has 76 stores with locations in every province except British Columbia. The Brick, which opened its first store in Edmonton in 1971, has 230 stores operating under The Brick, United Furniture Warehouse, The Brick Mattress Store and Urban Brick banners.

Corrections

A previous version of this Canadian Press story suggested The Brick was buying out Leon's. In fact, Leon's is buying its rival for as much as $5.40 per share.